In mid-October of this year, Israel’s Registrar of Charities issued “10 Golden Rules for Donors” (Hebrew). While the document is meant as a guideline for individuals, it holds immense value for the Israel’s charities, as well.

Below are The 10 Golden Rules (in English) and its implications for nonprofits operating in Israel.

Jews around the globe are mobilizing to donate to help fight the effects of the recent fire in Israel’s Carmel Forest.

One of the outcomes of the Haiti Earthquake (January 12, 2010) is an in-depth case study in disaster-relief giving. Hence, those donating to Carmel Fire relief efforts need not reinvent the wheel and can rely on the many lessons learned just 11 months ago.

A charitable foundation’s worst fear is that its grant will be used for non-charitable purposes. The U.S. Internal Revenue Service (IRS) stresses that this risk increases drastically when dealing with foreign grant making and expenditures.[1] The U.S. Department of the Treasury released its third and final version of its “Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S. Based Charities” (VBP) in September of 2006 to help charities implement procedures that will reduce the risk of unintended diversions of funds to terrorist causes.

A recent New York Times’ article attacked American charities that help build communities in Israel’s West Bank and IRS policy that enables donations to these organizations to be tax-deductable. As with any piece about the Palestinian-Israeli conflict, many people have been quick to attack or defend the veracity of the article.

To nonprofit organizations, the value of the article is not the accuracy of the authors’ claims, but rather the article’s insight into current concerns and trends influencing the nonprofit sector. These can serve as warnings and guidelines to US charities that operate internationally.

Nonprofit organizations have yet another hurdle to cross when applying for tax-exempt status. The Department of Homeland Security — the U.S. Government Department that oversees counter-terrorism, border security, disaster response, and immigration — is also an integral part of the tax-exempt approval process.

A recent study in Israel advocates the same theory, claiming that Israel’s poor standing in charitable-giving is directly related to the Israeli Government’s comparatively lower tax-deductible incentives.

However, by placing the blame squarely on the Israeli Government – instead of the shoulders of the nonprofit organizations operating in Israel – these researchers are causing the Israeli Nonprofit Sector to leave a huge well of potential-donors untapped. The charities in Israel are failing to engage would-be donors, and it is this lost opportunity that should really be addressed.

A list of great articles from around the web that I posted to Twitter from May 16 – May 22, 2010. This week’s topics include: Strategy & Governance; US Tax Tidbits; Social Media & Fundraising; Economy & Finance; and Potpourri.

I’ve Moved!

After 9 years in banking, I have decided it was time for my next challenge and have opened my own company that offers outsourced CFO services to local & international nonprofits and small businesses operating in Israel.

Visit my new site to discover how your organization can increase its efficiency and relieve stress by outsourcing critical financial tasks – either on an ongoing or per-project basis: Fogel CFO & Management Services